2026 (4) TMI 1207

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....s alleged that the applicant, by fraudulently generating fake Input Tax Credit (ITC) and issuing bogus invoices on the GST portal, utilized the same to set off the output tax liability arising from M/s RVNL Contracts instead of depositing the tax collected from M/s RVNL, the applicant discharged the output tax liability by using such fake ITC and thereby caused wrongful loss to the public exchequer to the tune of Rs. 32.66 crore. It is further alleged that the applicant is engaged in the systematic generation and utilization of fraudulent ITC and issuance of fake invoices without any underlying supply of goods or services. Learned counsel for the accused-applicant submits that the applicant was taken away by the officers of the Directora....

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....e furnished on a separate sheet of paper, which does not form part of the arrest memo. A perusal of the arrest memo (Annexure No. 2) shows ambiguity regarding the specific offence attributed to the applicant. Learned counsel for the applicant further submits that under Section 6(b) of the Act of 2017, where proceedings on a subject matter have been initiated by a proper officer under the SGST Act, parallel proceedings by a proper officer under the CGST Act are not permissible. It is submitted that four firms allegedly controlled by the applicant have already been issued notices under Section 70 read with Section 67 of the Act of 2017 by the Deputy Commissioner, State GST, Ayodhya Division-B, Ayodhya, for furnishing necessary documents. C....

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....dable, non-bailable and cognizable. With regard to the contention of illegal arrest on 16.02.2026, he submits that the same is incorrect. The applicant was arrested on 18.02.2026 following due procedure and was produced before the learned trial Court on the same day along with all relevant documents. No prejudice has been caused to the applicant, as the grounds of arrest and reasons to believe were duly communicated. Perused the records and the law on the issue. It is not disputed that no custodial remand of the applicant has been taken. The material appears to be primarily documentary in nature. The presence of the accused can be secured during trial. The applicant has no criminal antecedents, and the offence is punishable with impri....